Missouri State University
Countdown to the SMSU Centennial

A Long-Range Vision and Six-Year Plan (2000-2006)

Funding the Plan

Funding for Southwest Missouri State University’s long-range plan Countdown to the SMSU Centennial will come from several sources which include:

  • state appropriations (in the categories of: on- going programs, institutional performance support, and new programs)
  • student fees
  • internal reallocation
  • sponsored research
  • private donations

As the university moves forward during these six years, the relationship among these various sources of revenue becomes very important. In the past, the university has depended upon state appropriations and student fees to fund the majority of the Educational and General (E&G) Fund expenditures. Historically, these sources have provided more than 95 percent of the E&G budget. In the future, it will continue to be important for the university to expand these sources, as well as to develop and increase other types of revenue. The primary and secondary sources are discussed in this section.

Chart M

Constant fees and changing enrollment

View Chart M*

State appropriations

The university received increased support for new programs initiated during the previous five-year plan, and it is important that support be continued. The level of state appropriations needs to increase to more closely match the amounts received by other Missouri public four-year institutions of higher education. Chart O provides the information and assumptions about the amount of money needed to balance the university’s requirements.

As a result of implementing the long-range plan Welcoming the 21st Century, Southwest Missouri State University is a different institution than it was five years ago. The impact of implementing that plan, while partially funded by state appropriations, has affected the general operating budgets of the university. With additional graduate education comes corresponding demands for additional equipment, staff support, teaching and operating supplies and time for faculty to advise students in thesis projects and clinical experiences. These increased costs have out-stripped the ability of the university to respond in an acceptable way. As a result, SMSU requests that the State of Missouri add an additional amount to the regular appropriation to help cover these increased costs. This is identified in Chart O under the heading “Institutional Performance Support”; a more detailed account of the “Institutional Performance Support” can be found in Chart P.

SMSU will continue to develop new programs during the period covered by this plan. As those programs are developed, it is important to have the State of Missouri help support the new initiatives. Without state support, existing programs will be weakened. These changes will continue to alter the mix between undergraduate and graduate programs. With a larger graduate enrollment the cost of providing this service will increase. The specific degree programs to be added, complete with implementation date and cost, can be found on Charts E, F and G.

Student fees

The student fee income is the second largest source of revenue for SMSU, but this revenue source is under pressure on several fronts.

First, the pool of students qualified for admission at SMSU-Springfield will continue to decline due to the implementation of selective admission standards. There is keen competition for high-ability students and these outstanding students expect institutions to offer top-notch programs, facilities and support services; more lucrative scholarships and financial aid packages; and state-of-the-art technology. Obviously, these expectations have budget implications.

Second, as graduate students comprise a larger portion of the enrollment on the Springfield Campus, the average cost of educating SMSU students increases. At the same time, the average credit hour load and resulting institutional revenue decreases.

Third, given national and state concerns about the escalation of student fees and overall affordability of higher education, there is pressure to limit the increases in student fees to the inflation level. This pressure is felt on both the Springfield and West Plains campuses.

Fourth, as SMSU experiences more part-time and distance education registrations, the average credit hour load in these populations declines. Therefore, gross revenue per student is less. Again, this is true for both the Springfield and West Plains campuses.

With these variables providing the context, it is the intent of the university to limit the rate of annual increase in per credit hour fees at SMSU-Springfield to the Consumer Price Index (CPI) in any year when prior year state appropriations per student meet or exceed the average per capita appropriations for comparable Missouri non-land-grant universities. If that funding does not occur, SMSU has committed that it will not raise student fees more than 5 percent in any one year. At SMSU-West Plains, the commitment is to limit the credit hour fee increase to $2 per hour per year.

Chart M shows the effect of a constant fee and changing enrollment. Chart N (below) illustrates how revenue is enhanced when student fees are increased at a given percentage.

Chart N

Fee increase schedule and changing enrollment

View Chart N*

Internal reallocation

Internal reallocation should always be a part of any plan. The operations of the university should be examined every year to see if something should be changed, eliminated or added. With the $1.2 million reallocation in the previous five-year plan, there is not as much available to contribute toward the cost of new programs. Therefore, while reviews will always be made, no specific percentage is being calculated to be added to new revenues to cover these additional costs. The university, however, will continue its process improvement efforts by examining, improving and, when appropriate, eliminating or radically changing its fundamental processes. In some cases, these changes will mean a savings of resources or a reallocation of existing resources; in other cases, the improvements will require an additional expense. Much of the process improvement is being accomplished through a university-wide initiative known as “Change@SMSU.”

Sponsored research

SMSU has increased efforts to acquire external support over the past five years. A total of 265 proposals were submitted in Fiscal Year 2000 requesting $18,465,236. In Fiscal Year 1999, the university received 171 grants/contracts for a total of $4,685,708. The three major areas for these funds were Education (42 percent), Research (33 percent) and Service (25 percent). Sources of these funds were state (58 percent), federal (31 percent), businesses (5 percent), non-profit organizations (4 percent), and county and city government agencies (2 percent).

SMSU intends to increase its externally sponsored project activity over the next six years. The goals are to increase by 5 percent annually the number of proposals submitted and awarded, as well as the number of faculty applying for external funding to support scholarly projects.

Private donations

Private support for SMSU has grown over the years, and the university intends to continue that growth. The needs of the university are many and include money for facilities, academic programs, student financial aid, equipment, endowments, and the unrestricted fund. Each of these funds fill special requirements of the university and each area is important.

The goal for the future will be to increase annual gifts by 5 percent per year, both in dollar amount and number of gifts. The goal for the endowment is to grow the fund from its current $28 million to $42 million by Fiscal Year 2006. In addition, between Fiscal Year 2001 and Fiscal Year 2006, SMSU will develop and conduct a major capital campaign to support the needs outlined in this six-year plan. Included in the campaign will be goals for capital projects, equipment, scholarships, and other university needs.

Private donations are also important for the West Plains Campus. The goal is to have an annual fund amount of $750,000 and to increase the academic endowment to $615,000 by Fiscal Year 2006. This will support at least 75 restricted or endowed scholarships. As always, the university will use these private funds to enhance the opportunities of students by supplementing other funds to maximize available resources.

Chart O

Comparison of anticipated costs to estimated revenues

View Chart O*

Chart P

Institutional performance by building the infrastructure

$       550,000 - Implementing the Statewide Public Affairs Mission
$       500,000 - Academic Development Center
$    3,300,000 - Instructional and Research Equipment
$    2,850,000 - Strengthening Graduate Education Infrastructure
$    2,900,000 - Operating Budgets
$        600,000 - Distance Learning
$        500,000 - Business Process Redesign
$        800,000 - Instructional Technology
$        500,000 - SMSU - West Plains
$   12,500,000 - Total

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System performance measures

 

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